Calculate the Income statement and cash flow statement using excel (SHOW ALL WORK):

Smith Machine Company uses a MARR of 10% and depreciates its assets using a seven-year MACRS. Smith Machine Companys effective income tax rate is 25%.

Equipment cost- 2 lathe machines that will each cost $25,000 including trade in allowance and sales tax. The total cost of the shipping and handling is $2,500. The total cost to install the lathe machines is $68,000. Setup cost of the lathe machines will be $13,500. The useful life of the lathe machine is 8 years. The lathe machines are to be sold at the end of the project for $10,000 Each lathe machine will require 1 operator at a rate of $23/hr. The Company shop operates 4080 hr/yr. The total maintenance labor cost is 20% of operating hours at $19/hr. Total annual direct materials are $375,000. Manufacturing overhead excluding depreciation is presumed to be an additional $185,000/yr. Revenues are expected to be $1,015,000 each year as a result of the project. The project will run for 8 years